Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152903
Authors: 
Marcet, Albert
Nicolini, Juan Pablo
Year of Publication: 
2005
Series/Report no.: 
ECB Working Paper 469
Abstract: 
This paper studies the short run correlation of inflation and money growth. We study whether a model of learning does better or worse than a model of rational expectations, and we focus our study on countries of high inflation. We take the money process as an exogenous variable, estimated from the data through a switching regime process. We find that the rational expectations model and the model of learning both offer very good explanations for the joint behavior of money and prices.
Subjects: 
Inflation andmoney growth
quasi-rationality
switching regimes
JEL: 
D83
E17
E31
Document Type: 
Working Paper

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